Page 4936 - Week 15 - Thursday, 15 December 2005
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own reports that have helped in reaching a pragmatic view of the investment climate, economic growth rate, employment and land availability in the wider Canberra central area, not just City Hill.
The task force report refers to the preliminary and financial modelling undertaken by ACT Treasury with various agencies and also with an expert external consultant, Hill PDA. This work shows that there will be significant costs incurred for infrastructure before there will be any significant revenue from land sales. The report also shows that development of the City Hill precinct is likely to extend over approximately 27 to 30 years, and makes reference to the capacity of the existing Canberra housing market to absorb premium high density housing and an emerging surplus of commercial office space environment in the city.
The expert consultant report shows that, despite a positive outcome over a 30-year period, there are substantial negative cash flows in the early years and that the current outlook within the ACT residential and commercial property market suggests that a dedicated project would not be justified to start until around 2010. The government believes it is therefore prudent, as part of any robust due diligence process, for more detailed feasibility studies to be undertaken before committing to a project of this scale.
The government will also analyse the full range of social and environmental impacts associated with the development through a rigorous triple bottom line analysis. In this respect it is important to reflect on the fact that development in our city centre is not stagnant and indeed continues to be the subject of substantial private sector investment. A range of short-term projects have the capacity to further enhance the situation which, as part of a well-planned development sequence, will result in ongoing incremental development that can optimise returns to the territory and potentially defray infrastructure costs.
Those on the other side of this place who say that the government’s position is a non-decision, or that the city should be developed in the next 10 years—and I include amongst these the criticisms of Mr Terry Snow—need to be reminded of just what is happening and what is planned to happen under the government’s current policies, the Canberra central program and, as both the task force report and independent financial modelling by Hill PDA identify, the current prevailing and forecast market conditions.
For the information of members, I would like to outline in detail the unprecedented levels of development activity currently happening in our city centre. In section 61 of the city a new building will be built for the Department of Agriculture, Fisheries and Forestry. This is especially welcome, as it is a commonwealth government department. They have chosen to relocate from the parliamentary triangle into our city centre. That building will have a gross floor area of 29,400 square metres and its construction value is $63.6 million.
Turning to section 88 of the city, a new building is in the process of being built for the commonwealth department of industry, trade and resources on Akuna Street. Members will be familiar with that. That building has a gross floor area of 28,141 square metres and is of the value of $58 million.
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